Panzhihua Transportation

There is a long-distance bus from Panzhihua to Lijiang and viceversa.
The price is 62 RMB an the journey is quite fun! It's usually a mid-size bus for about 25 pax.
And I can understand why it's a mid-size one... :) it's because this is the type which will suite the road which is mostly narrow (enough to fit just 2 vehicles) and with a lot of mountain virages. The landsacape is very impressive and it probably worth a ride just for that. Also you will get to see how the locals drive... they drive like crazy! when the bus driver was about to turn on a virgae he would not lower the speed, but he would just signal that I'm coming round the corner... :) and he drived really fast for this kind of road. Apparently all the other drivers do just the same. Also, the only time he would have to stop is just because we were driving throgh some small village where the locals have a street market, of course on the road and there could pass only one vehicle, so from time to time you would have to let vehicles from opposite direction to pass. But it was also interesting, cause you get to see the locals and the street market. If you're realy into adventure the 7-8 hours trip with this bus can be fun. You'll have one stop on the way to eat and maybe 2 more for the toilet..
There are several buses leaving from Panzhihua to Lijiang, the one I took was at 8:30, and it is suitable when you came with the K117 train at 7:30.
The clercks at the bus station will speak English fairly well for you in order to get your ticket. And that is realy surprising, as in other big cities it sometimes can be more of the trouble. But on the other hand it's understandable as each day same route is followed by tens of foreigners. Out of 24 passengers on this bus, there where 4 foreigners including me.

You can get to Panzhihua by train. There is a no: K117 train from Beijing to Panzhihua. The train leaves from Beijing at 11:29 and you'll get to Panzhihua after 2 nights spent in train at around 7:30. Also you can take the same train from Chengdu, it leaves at 18:20, you'll be at Panzhihua next morning (same around 7:30 :)
Also you may catch this train from Xi'an or EmeiShan - other travel destinations people usually come from.

Oh.. and about the price:
Soft-sleeper from Beijing will cost about 900 RMB, hard-sleeper will be around 500 RMB.
Soft-sleeper from Chengdu will be 300 RMB, hard-sleeper is 179 RMB.
Keep in mind that the prices may changes and also depends on the lower or upper bed you are taking, but the difference is minor.